On April 2, 2025, during “Liberation Day” President Trump announced a 10% base tariff on almost all imports and added steep “reciprocal” tariffs on more than 60 nations, scheduled to take effect on April 9. These were delayed 90 days to accommodate negotiations, then postponed again to August 1, and entering into effect as of today.

Court challenge: A federal court ruled in May that this action overstepped executive authority under the International Emergency Economic Powers Act (IEEPA), but enforcement was paused pending appeal, keeping the tariffs active.

What Is Changing on August 1, 2025

• Base tariff: 10% on most imports.
• Targeted increases:
  • European Union and Mexico: Originally 30%, now reduced to 15% across some goods following a July 27 agreement. However, steel from Mexico will be subject to a 50% tariff only for shipments exceeding the annual bilateral quota. Mexican products tht comply with the USMCA Rules of Origin are exempt of the 30% tariffs.
  • Canada: Up to 35%, implementation delayed to September 1, 2025.
  • Brazil: 50% on broad imports.
  • Copper products: 50% tariff now applies only to finished copper goods; raw copper is exempt.
  • Japan and South Korea: 25%, delayed to September 1, 2025.
  • India: Newly added – 25% tariff on key industrial goods and electronics.
  • 150+ other nations: Tariffs between 10–15% expected.

Additionally, revised enforcement letters were sent to 30 countries, clarifying the scope and timelines.

International Response and Repercussions

In response to the U.S. imposing tariffs, countries around the world have reacted in various ways:

Mexico denounced the tariffs as a violation of the USMCA and proposed retaliatory tariffs on U.S. goods like pork and cheese. However, it emphasized a preference for negotiation and suggested creating a joint diplomatic working group.

Canada, led by Prime Minister Carney, called the tariffs unjustified and reaffirmed its own 25% counter-tariffs on C$155 billion worth of U.S. goods. This sparked a “Buy Canadian” boycott as a form of protest.

China condemned the tariffs, imposing counter-tariffs on U.S. exports like soybeans and LNG, accusing the U.S. of economic coercion.

South Korea and Japan criticized the U.S. tariffs and called for negotiations. South Korea also introduced emergency support measures for its exporters to ease the impact.

Australia expressed disappointment, describing the tariffs as unfriendly, but chose not to retaliate. Instead, it sought an exemption through diplomatic dialogue.

Taiwan negotiated a 20% tariff rate and continues to push for better terms, citing its strategic economic alignment with the U.S.

Meanwhile, countries like Thailand, Cambodia, and Pakistan welcomed the new tariff structure, viewing it as an opportunity to grow their trade with the U.S.

Source: Financial Times, Reuters, Canadian Governmen, CNBC

Economic Impact

Prices are already rising across multiple sectors, particularly within the manufacturing industry. Companies are facing elevated input costs due to increased tariffs on critical materials like copper, steel, and electronics components.

Key sectors such as automotive, industrial machinery, and technology are experiencing significant disruptions in pricing and supply chains. Financial markets have shown a mixed response: equities remain steady, while the dollar has weakened due to trade-related uncertainties.

Summary Table 

August 1 represents more than just a policy deadline; it marks a significant turning point in the United States’ approach to global trade. Whether the tariffs result in new trade agreements or spark a broader trade conflict, their effects will be far-reaching.

For further information or inquiries, please contact us. Mexcentrix experts are available to assist with insights, USMCA compliance analysis and studies, and strategic guidance regarding the upcoming tariff changes.

A Strategic Location in the Heart of Mexico

Nestled in the Bajío region, San Luis Potosí is within easy reach of major hubs like Mexico City, Guadalajara, Monterrey, and key U.S. border crossings. It has direct access to key highways such as Federal Highway 57 and modern rail networks. Its central location also ensures competitive distances to Mexico’s main ports: approximately 750 km to Lázaro Cárdenas, 700 km to Manzanillo, and 650 km to Veracruz, strengthening its logistics and export capabilities via both the Pacific and Gulf coasts.

Accelerating Industrial Momentum and Building Availability

This expansion is largely driven by a strong manufacturing sector. The region also boasts a Class-A facility inventory nearing 28 million square feet, with vacancy rates remaining low and highly competitive at around 2.5%.

Centerpiece: Automotive Cluster

In Q1 2025, San Luis Potosí produced 82,831 vehicles, operating at 70.8% capacity.

• GM led with 55,655 units.
• BMW assembled 27,176 units.

There were also USD 39.4M in new automotive investments, with expansions by Continental, JTEKT, and SL MEX, the latter opening a headlamp plant, creating 385 jobs. SLP remains a key automotive hub in Mexico.

Diversification: Aerospace & Beyond

Manufacturing here isn’t limited to cars. The aerospace sector is experiencing a boom cumulative FDI in aerospace now exceeding US$130 million, transforming SLP into a centralized supplier of high-precision aircraft components and systems. Over 4,100 new jobs across five major aerospace plants exemplify this trend. Meanwhile, electronics, medical devices, appliances, and food-processing niches continue to expand.

A Well-Prepared Workforce

Approximately 20% of San Luis Potosí’s 1.2 million economically active residents work in manufacturing, providing the region with a strong and stable labor force. This strength is further reinforced by industry-education partnerships, including dual-training programs developed with BMW, Cummins, local universities, and technical institutes, which focus on enhancing skills in mechatronics, materials, and automation.

Competitive Operations & Infrastructure

San Luis Potosí boasts a highly competitive operational environment supported by modern infrastructure and a strategic geographic location. The state is well-connected through major federal highways and rail networks, facilitating efficient access to key seaports such as Manzanillo and Altamira, the U.S. border, and central Mexico. Additionally, it benefits from a growing international airport and a portfolio of well-developed industrial parks equipped with world-class facilities and utilities.

As of May 2025, data from Solili reports that the average industrial lease rate in San Luis Potosí stands at approximately USD 5.58 per square meter per month (around USD 0.52 per square foot per month), positioning the state as one of the most cost-competitive industrial rental markets in Mexico.

In 2025, the state has at least 25 industrial parks (both public and private), with 18 currently operational across seven key municipalities.
Since 2022, six new parks have been inaugurated, with more under development in Villa de Reyes, Santa María del Río, and Mexquitic de Carmona.

Government Incentives & Business Climate

Both federal and state authorities extend tax-related incentives or other types of incentives. SLP’s business environment is further acclaimed for political and labor stability, streamlined permitting, and active recruitment support. In the second quarter of 2024, San Luis Potosí attracted USD 1.064 billion in FDI, representing 3% of the national total, positioning it as the seventh state to receive the most investment in that period.

Why Manufacturers Should Take Notice

San Luis Potosí has transformed into a compelling site for manufacturers seeking scalability, regional connectivity, and stable, cost-effective production. Its rapidly evolving ecosystem, anchored by global OEMs, diversified into high-tech sectors, and underpinned by an avowed workforce, positions it as a rising star in Mexico’s industrial narrative. As companies pivot forward, SLP offers an environment equally rich in promise and substance.

If you want more detailed information or personalized guidance about investing and manufacturing opportunities in San Luis Potosí, consider reaching out to Mexcentrix, with headquarters in San Luis Potosi, is a trusted partner that specializes in easing business expansions in the region. Their expert insights and hands-on support can help you navigate the local landscape and maximize your success in this vibrant market. Contact us!

In today’s fast-paced global market, manufacturers constantly seek ways to cut costs without sacrificing quality or efficiency. One of the most effective approaches is to expand or relocate operations to Mexico, a country that offers an ideal combination of low cost and a skilled workforce.

Mexico’s Manufacturing Wages vs. U.S.

When comparing manufacturing wages, Mexico offers a clear cost advantage over the U.S, allowing companies to keep margins while scaling operations.

Both México’s and the United States’ labor costs vary per location and industry; nevertheless, below you can find approximate fully burdened rates for some common positions in the manufacturing industry:

United States Labor Costs Source: U.S. Bureau of Labor Statistics,  Occupational Employment and Wage Statistics (OEWS) Profiles, May 2024 Profiles.  

A Skilled and Growing Workforce

Mexico continues to invest in education and vocational programs, producing a growing pipeline of engineers and technicians. Many companies from Germany and its surrounding have benefited from the dual education model.

Furthermore, regions such as Bajío, Monterrey, and Tijuana are recognized for their industrial ecosystems and technical universities, making them attractive hubs for advanced manufacturing.

This ongoing investment in human capital ensures that manufacturers can count on a reliable workforce to support long-term growth.

Regional Flexibility for Operational Strategy

Mexico’s labor market also provides geographic flexibility. While northern border areas often have higher labor rates due to increased demand and cost of living, central and southern regions can offer more affordable options while still maintaining access to infrastructure and skilled labor. In the southern region there is still a need for training and qualifying personnel for the manufacturing industry.

This diversity allows manufacturers to customize their site selection based on budget, logistics, and access to supply chains or export routes.

Why Mexico Makes Strategic Sense

In addition to finding cost savings in real estate and logistics costs, with its affordable and skilled labor, Mexico has become a go-to destination for manufacturers aiming to reduce costs and increase efficiency. It’s not just a matter of lowering expenses; it’s about building a scalable, resilient, and responsive supply chain close to major consumer markets.

Moreover, operating under a shelter company like Mexcentrix, we can help you save up to 40% in the start-up phase and up to 20%

Ready to Establish Your Operations in Mexico?

At Mexcentrix, we help international companies navigate every step of the manufacturing setup process from site selection and legal compliance to full shelter services and operational support. Contact us today to learn how we can support your success in Mexico.

One of the main advantages when nearshoring to Mexico is its cost-effective labor market. However, it’s important to understand the country’s labor framework to stay compliant and build a productive workforce. Here’s what you need to know:

Key Aspects of Mexican Labor Law

Mexico’s Federal Labor Law (Ley Federal del Trabajo or LFT) is the primary legal framework that governs labor relations in the country. It sets out the rights and obligations of both employees and employers, aiming to promote fair labor practices, decent working conditions, and social justice. The law applies to most employment relationships in Mexico and covers various aspects such as employment contracts, wages, working hours, rest periods, occupational safety, and procedures for labor disputes.

Key Principles of Mexican Labor Law:

• Worker Protection: The LFT strongly favors employees in legal interpretation, as it’s based on social justice and constitutional labor rights.
• No Employment at Will: Employees in Mexico cannot be dismissed without cause and without severance; labor laws are much more protective compared to countries like the U.S.
• Mandatory Benefits: Employers must provide specific benefits, including paid vacation, Christmas bonus (aguinaldo), profit sharing, social security, and severance pay if applicable.

Work Shifts and Hour Limits

The law classifies work shifts into three main categories: daytime, nighttime, and mixed shifts, each with specific rules regarding allowable working hours. These classifications are essential for ensuring compliance with labor standards and protecting workers well being. Below is an overview of each shift type:

Daytime

• Hours: between 6:00 a.m. and 8:00 p.m.
• Maximum daily duration: 8 hours.
• Maximum weekly duration: 48 hours.
• Working days: Monday to Saturday.

Night shift

• Hours: Between 8:00 p.m. and 6:00 a.m
• Maximum daily duration: 7 hours.
• Maximum weekly duration: 42 hours.

Mixed Workday

• Combination: Includes periods of the day and night shift, provided that the night period does not exceed 3.5 hours; otherwise, it is considered a night shift.
• Maximum daily duration: 7.5 hours.
• Maximum weekly duration: 45 hours.

 Overtime Pay

Hours worked beyond the established workday are considered overtime and must be paid as follows:

• Up to 9 overtime hours per week: Paid at 200% of the regular hourly wage.
• From the 10th overtime hour per week onward: Paid at 300% of the regular hourly wage.

The law limits overtime to a maximum of 3 hours per day and no more than 3 times per week, meaning a total of 9 overtime hours per week.

Trial Periods

According to Article 39-A of the Federal Labor Law (LFT), when entering into an initial contract for an indefinite period or more than 180 days, a trial period may be established with the following maximum durations:

• Up to 3 months (90 days) for operational, administrative or general positions.
• Up to 6 months (180 days) for management, managerial, or positions requiring specialized technical knowledge.

During the probationary period, the employer may terminate the employment relationship without liability for payment of severance (liquidation), provided that there is objective evidence of lack of aptitude or performance, and the legal procedure is respected.

Minimum Wage

As of January 1, 2025, the official minimum wages set by the National Minimum Wage Commission (CONASAMI) are:

• General minimum wage: MXN 249.00 per day (USD 14.50)
• Northern Border Zone: MXN 374.89 per day (USD 21.80)

Mandatory Benefits by Law

Mexican employers are legally obligated to provide the following benefits:

Common Additional Benefits Offered by Employers

Many companies offer voluntary benefits beyond what the law mandates to remain competitive. These include:

• More than 15 days of Christmas bonus
• Savings funds (Fondo de Ahorro): Often matched up to 13% of salary
• Food vouchers (vales de despensa): Tax-exempt up to a limit (approx. 40% of UMA)
• Transportation assistance
• Private health insurance
• Life insurance

Employee Dismissal

Dismissal in Mexico can be with cause or without cause, but either way, it must follow legal protocol:

• Without cause: Requires a severance payment of

• • 3 months of daily salary
  • 20 days per year worked
  • 12 days per year of seniority bonus (capped at 2x minimum wage)

• With cause: No severance required, but must be justified (Article 47)

Final Recommendations

Here are some best practices for hiring in Mexico:

• Always use written contracts, even for temporary roles.
• Register employees with the IMSS and INFONAVIT on day one.
• Keep detailed payroll records for compliance and audits.
• Partner with a local HR/payroll provider if you’re unfamiliar with local laws.
• Use a compliant payroll software

Mexico’s labor landscape is structured to protect employees but remains employer-friendly when properly managed. Understanding your obligations and offering attractive benefits will position your company as a competitive and responsible employer. For more insights into how shelter companies can help your business, consider contacting Mexcentrix and exploring case studies of companies that have successfully leveraged this model.

Mexcentirx can guarantee 100% compliance with labor laws and facilitate the process of hiring in Mexico. Contact us!